ABSTRACT

The article covers the advent of the new mechanism of resolution of the Russian commercial banks and identifies significance of the application of this regulatory innovation. The research covers the recently revealed new trends in resolution of the banking institutions and provides detailed description of the new mechanism of resolution and risks involved in shift from the loan-based resolution to equity-based resolution. The article was an integral part of a broader 2017 research titled “Regulatory innovations in banking: methods of evaluation of the effectiveness of implementation of regulatory innovations in banking” commissioned by the Government of the Russian Federation.